Stock Split
1. Suppose you own 2,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is $3.00, and the stock sells for $80 per share. Laurence announces a 2-for-l split. Immediately after the split, how many shares will you have, what will the adjusted EPS and DPS be, and what would you expect the stock price to be?
2. Fauver Enterprises declared a 3-for-l stock split last year, and this year its dividend is $1 50 per share. This total dividend payout represents a 6% increase over last year's pre-split total dividend payout. What was last year's dividend per share?